Bournville leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bournville will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Bournville with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Bournville lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted negotiations with the landlord of her studio flat in Bournville, Samantha started the lease extension process as the 80 year deadline was rapidly nearing. The transaction was finalised in February 2015. The landlord’s costs were negotiated to less than 550 pounds.
In 2014 we were e-mailed by Mr and Mrs. P Morel who, having acquired a one bedroom flat in Bournville in March 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Bournville with a long lease were worth £218,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished in 2089. Considering the 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.
Last year we were phoned by Dr U Simon , who acquired a studio apartment in Bournville in May 1997. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical homes in Bournville with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 billed quarterly. The lease finished on 15 September 2100. Taking into account 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.